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Investors flee bourse in fear of US recession

2008-01-17 00:00
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2008-01-17 00:00
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The main WIG index has been dropping continuously since Christmas, and has lost 17% since the beginning of 2008. "Not only large investors are leaving the bourse, but also cleaning ladies," said Marek Nienałtowski, an analyst with Goldenegg. Fears of recession in the United States have left investors all over the world fleeing bourses and sinking their cash into safe bonds and gold. On a more positive note, "The withdrawal of the least experienced investors from investment funds usually marks the end of drops," said Marek Nienałtowski. Experts claim that the value of shares is already low and bourse investors should get ready to start a buying spree. While it is expected that a strong rebound will be followed by another deep discount, according to Helge Rechberger, head analyst at Raiffeisen Bank "In the second half of the year the situation should improve and records could be witnessed again." (Rzeczpospolita, pp. A1, B4, B5, B15; Puls Biznesu, pp. 1, 18-19; Parkiet, pp. 1, 2-3, 4, 28)

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